Credit Cards and You

What to know about credit cards and how to manage them.

The Basic of Credit

  • What is credit? Credit is basically someone's credibility or trustworthiness. A credit score is an accurate representation of someone's ability to pay for something at any given time.

  • What are the forms of credit? i.e student loans, credit cards, etc. Mortgages and auto loans are considered forms of credit because a consumer will most likely have to borrow money to pay for them, thus factoring in all the aspects of credit. In this case they will go to a lender for money.

  • What costs and benefits are associated with credit? -Fees and penalties with failing to pay costs on time and some cards already come with high interest rates as is. Certain rewards for good credit scores and creditworthiness cash back. A credit bureau company that collects information from various sources and provides consumer credit information on individual consumers.

  • What determines if someone gets credit and how much they get?

Their credit score and on whether the person pays bills on time, how much debt he or she has, the length of his or her credit history how many new accounts the person has, and the diversity of the credit accounts. Knowing what criteria go into the number on a credit report can help a person maintain a good score and qualify for higher limits and better rates on personal loans.
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Citi Thank You Preferred Card

  • Citi Thank you Preferred Card

-No Annual Rate

-After 7 months APR starts at 14.24%

-While there are a lot of redemption options for ThankYou points, many of them don’t offer the average point value of 1 cent. Cash redemption yields a low 0.5 cents per point. ThankYou Points can often be used for gift cards.

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Disover It Card

  • Discover It Card

-No annual rate

-After 6 months 10.99% is the starting APR.

-There is a waiver for the first late fee and no penalty APR. The only real downside is the spending limit is typically set at $2,000.